Karnataka government recently introduced the global capability centres (GCC) policy 2024, aiming to bolster its reputation as a global innovation hub while creating 3.5 lakh jobs by 2029.
The policy is designed to attract 500 new GCCs to the state, bringing the total to 1,000 and generating an economic output of $50 billion.
With this, Karnataka government is targeting 330 Forbes 2000 companies to establish their GCCs in the state by 2030.
“We are dedicated to providing the necessary incentives and stimulating innovation in our tier 2 cities, thereby democratising opportunities for prosperity,” said chief minister Siddaramaiah, highlighting the policy’s significance.
The GCC policy emphasises regional development, particularly through the ‘Beyond Bengaluru’ initiative. This program targets decentralising GCC activities by promoting cities like Mysuru, Mangaluru, and Tumakuru as viable alternatives for establishing new centres.
“Our vision extends beyond Bengaluru to promote balanced regional development,” said the minister for electronics, IT, BT and rural development, Priyank M Kharge.
The government also announced the exchange of five MOUs with big techs to train 100,000 people and expects an investment of $17.5 billion in total.
What is ‘Beyond Bengaluru’?
The policy outlined four key pillars: workforce development, innovation ecosystem enhancement, regulatory reforms, and tailored incentives.
Among its highlights are the creation of 1 lakh internships and a global leadership development skilling program, which aims to equip the workforce with advanced skills in technologies like artificial intelligence and machine learning.
Bengaluru currently hosts 875 GCC units, accounting for 35% of the national GCC workforce. The city contributes significantly to sectors like IT, banking, and life sciences. However, Karnataka seeks to extend this dominance to other regions.
The “Beyond Bengaluru” cluster seed fund and infrastructural investments such as expanding metro networks and enhancing airport connectivity are part of this strategy.
Industry representatives have welcomed the policy. According to a senior GCC executive, “Karnataka’s targeted approach with infrastructure and talent skilling ensures businesses can seamlessly expand. The emphasis on secondary cities is timely and aligns with broader industry needs.”
The policy includes initiatives such as a dedicated GCC Acceleration and Investment Council and specific fiscal incentives for enterprises establishing operations outside Bengaluru to further attract investments.
The state is also setting up innovation hubs and centres of excellence in AI, cybersecurity, and quantum computing to foster advanced research.
The government aims to position Karnataka as a global leader in the GCC landscape. Currently contributing $22.2 billion to the GCC market, the state plans to double its share by 2029.
With policies supporting sustainable innovation, inclusive regional growth, and digital transformation, Karnataka is poised to reinforce its status as a preferred destination for global businesses.
The GCC policy is seen as a strategic step in achieving these ambitions while addressing employment and economic challenges.
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